The stock board at the Australian Securities Exchange (ASX) is seen in central Sydney November 6, 2008. Australian shares fell 3.8 percent on Thursday, driven down by miners such as BHP Billiton Ltd, after U.S. economic data stoked fears of a prolonged sl
The stock board at the Australian Securities Exchange (ASX) is seen in central Sydney November 6, 2008. Reuters/Daniel Munoz
* In US economic data,
the Dallas Federal Reserve manufacturing
index fell from +3.5 to minus 4.4 in January.
* European shares
rose for the eighth day on Monday with
investors largely shrugging off the win by the Syriza party in Greek
elections. The FTSEurofirst 300 index rose by 0.6% to 7-year highs
although Greek shares fell by 3.2%. The German Dax rose by 1.4%
to record highs and the UK FTSE lifted by 0.3%. Mining shares fell in
London trade in response to higher metal prices with BHP Billiton up
by 0.5% while Rio Tinto rose by 0.2%.
* US sharemarkets
fell at the start of trade but quickly rebounded to
be mixed in afternoon trade. Trading volumes were weak in New
York ahead of a major blizzard that will clear all traffic from roads
except emergency vehicles. At the close of trade the Dow Jones
was up by 6 points or less than 0.1% after earlier being down 105
points. The S&P 500 index was up 0.3% and the Nasdaq was up by
14 points or 0.3%.
* US long-term treasury
yields were modestly weaker (yields
higher) on Monday. Traders were dissecting the Greek election
result and were awaiting the Federal Reserve meeting. US 2 year
yields rose by 2 points to 0.52% while US 10 year yields were up by
2 points to 1.828%.
* The euro and commodity currencies
rose against the greenback
in European and US trade on Monday. The Euro rose from lows
near US$1.1170 to highs near US$1.1290 and was near US$1.1255
in afternoon US trade. The Aussie dollar rose from lows near
US78.85c to highs around US79.35c and was near US79.15c at the
US close. But the Japanese yen eased from 117.56 yen per US
dollar to JPY118.58 and was near JPY118.45 at the end of the US
session.
* World oil prices
eased on Monday. Saudi Arabia's King Salman
pledged to follow the existing oil policy. And investors also digested
news of the Greek election result and an impending blizzard to hit
the US north-east. OPEC's secretary general said
"Now the prices
are around $45-$50 and I think maybe they reached the bottom and
will see some rebound very soon."
The Brent crude price fell by
US63c or 1.3% to US$48.16 a barrel while the US Nymex crude
price fell by US44c or 1.0% to US$45.15 a barrel.
* Base metal prices
rose between 0.6-2.9% on Monday, largely
reversing Friday's losses. Aluminium rose by 2.9% and nickel rose
by 2.8%.
Gold
fell for a second day as fears related to the Greek
election result eased. The Comex gold futures price fell by
US$13.20 an ounce or 1.0% to US$1,279.40 per ounce.
Iron ore
fell
by US$2.60 or 4.1% on Monday or to US$63.30 a tonne.
Ahead:
In Australia, the NAB business survey is released with the
weekly consumer confidence index. In the US, data on weekly chain
store sales, new home sales, durable goods orders, home prices
and consumer confidence are released on Tuesday with the
Richmond Federal Reserve index. The Federal Reserve starts a
two-day meeting.
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